The oil and gas
industry is not supportive of Governor John Kasich’s plan to lower state income
taxes for Ohioans. That’s because Kasich wants to make the income tax
revenue-neutral by hiking the severance tax on oil and gas drillers who are
coming to the get the newly found shale deposits in eastern Ohio.

Kasich says the
tax would still be considerable lower than what many other states impose. That
includes West Virginia and Pennsylvania.

The governor
believes his proposal isn’t really that big a deal to the industry.

“There was an
apprehension that, well, if you put this (tax) on, you’ll drive everybody away.
Are you kidding me? Every single time I meet with the industry privately, you
know what they say? We (the state) should take this and run,” Kasich says. “But
then they get their lobbyists and these other people and they obscure the
issue. But it will become clear and it will become part of our tax reform."

Two polls in
recent months have shown a majority of Ohioans support Kasich’s proposal.

But Tom Stewart,
executive vice president of and spokesman for the Ohio Oil and Gas Association,
says Governor Kasich isn’t making any new friends with an important industry
for the state’s future.

Stewart says
Kasich, “is obviously trying to create a way to angle toward taxation and
otherwise confiscating capital investment out of this industry. This industry
is probably the job creator going in the state of Ohio, the numbers are going
to prove that, and I think the governor’s going to regret very much bringing up
this issue now.”

And Stewart says Kasich is obviously downplaying the significance and potential impact of his tax
proposal.

“He makes it
sound so simple; that it’s just four percent. But that’s a four percent gross
receipts tax and an eight or nine percent net revenue industry. So what’s he’s
really talking about is taking half the revenues that should be plowed back
primarily into eastern Ohio, to develop more economic opportunity for the
citizens of eastern Ohio, for all the small businesses, including many of my
members who are dependent on that capital investment,” says Stewart.

The industry
spokesman says he’s in touch with Ohio lawmakers and more than a few are
disturbed by the creation of a special tax on one industry.

State
Representative Andy Thompson (R-Marietta) is among those who do not support
Kasich’s proposal.